Early retirement is the dream held by many, but realised by few. Being able to save enough money to fund a standard length retirement is difficult, but finding the money for a few extra years makes early retirement near on impossible.
If you just can’t work another day, here are five signs that you may be ready to retire early.
1. Emotionally you’ve already checked out of work. You’ve lost focus, and spending time with family, or doing things that you enjoy, are infinitely more satisfying than pursuing your career. Usually, it’s all about a work-life balance, but sometimes the scales tip too far to be redressed.
2. You’ve created a retirement budget and have managed to stick to it rigidly. This shows you are determined to give work the flick and are happy to make the financial sacrifices necessary to achieve a more leisurely lifestyle.
3. You have no real financial drain. Your children are financially independent, your home loan is paid off and your personal debt is minimal. The only reason to keep working is because you enjoy it, so if this isn’t the case, it’s time to look for a way out.
4. Investments can go up and down, but if your financial portfolio is well balanced and can withstand losses, then you’re in good shape to retire early. Before making any decisions, check with your financial advisor how you can make the most of your nest egg.
5. Sometimes life is just too short. Poor health or the loss of someone close can make you re-evaluate your life and the amount of time you spend at work. At the end of the day, only you and your family can make the decision of when the time is right.